Friday, May 8, 2015

StreetShares Brings New Funding Sources to Small Businesses

StreetShares makes is faster and easier for small businesses to find funding for their companies. The veteran-run, Washington, D.C.-based organization has a very unusual approach to finding financial support for small businesses. The company connects small business owners with investors and backs part of the loans themselves.Veterans helping veterans

The company was formed in 2013 by an Iraq war veteran and former finance lawyer, and former head of small business credit for Capital One. Their primary goal was to help veteran-focused small business, entrepreneurs and service organizations. Most of their clients are small businesses owned by U.S. military veterans. Veterans and other small business owners can apply for a loan, then pitch their business to potential investors. Investors compete in an online auction to fund portions of the loan. The result is capital for small business owners at the lowest loan bids.

StreetShares works with various banks and investment loan companies in securing funds for small business owners. The company describes their approach as "It’s like Shark Tank meets eBay." They also personally back some of the loan amounts.

Grants

The company is currently running a campaign called the StreetShares Commander's Call Veteran Business Award which will award one veteran-owned business a $5,000 grant for their company.